https://github.com/sky-ecosystem/arbitrum-farms
https://github.com/sky-ecosystem/arbitrum-farms
Last synced: 3 months ago
JSON representation
- Host: GitHub
- URL: https://github.com/sky-ecosystem/arbitrum-farms
- Owner: sky-ecosystem
- License: agpl-3.0
- Created: 2024-05-21T10:04:08.000Z (about 2 years ago)
- Default Branch: dev
- Last Pushed: 2024-10-25T19:58:09.000Z (over 1 year ago)
- Last Synced: 2025-06-10T14:36:57.218Z (12 months ago)
- Size: 427 KB
- Stars: 0
- Watchers: 2
- Forks: 0
- Open Issues: 2
-
Metadata Files:
- Readme: README.md
- License: LICENSE
- Audit: audit/20240813-ChainSecurity_MakerDAO_Arbitrum_Farms_audit.pdf
Awesome Lists containing this project
README
# Arbitrum Farms
## Overview
This repository implements a mechanism to distribute rewards vested in a [DssVest](https://github.com/makerdao/dss-vest) contract on L1 to users staking tokens in a [StakingRewards](https://github.com/makerdao/endgame-toolkit/blob/master/src/synthetix/StakingRewards.sol) farm on Arbitrum. It uses the [Arbitrum Token Bridge](https://github.com/makerdao/arbitrum-token-bridge) to transfer the rewards from L1 to L2.
## Contracts
- `L1FarmProxy.sol` - Proxy to the farm on the L1 side. Receives the token reward (expected to come from a [`VestedRewardDistribution`](https://github.com/makerdao/endgame-toolkit/blob/master/src/VestedRewardsDistribution.sol) contract) and transfers it cross-chain to the `L2FarmProxy`. An instance of `L1FarmProxy` must be deployed for each supported pair of staking and rewards token.
- `L2FarmProxy.sol` - Proxy to the farm on the L2 side. Receives the token reward (expected to be bridged from the `L1FarmProxy`) and forwards it to the [StakingRewards](https://github.com/makerdao/endgame-toolkit/blob/master/src/synthetix/StakingRewards.sol) farm where it gets distributed to stakers. An instance of `L2FarmProxy` must be deployed for each supported pair of staking and rewards token.
- `EtherForwader.sol` - A simple ether forwarding contract deployed on L2 to collect excess fee refunds and forward those to the `L2GovernanceRelay`.
### External dependencies
- The L2 staking tokens and the L1 and L2 rewards tokens are not provided as part of this repository. It is assumed that only simple, regular ERC20 tokens will be used. In particular, the supported tokens are assumed to revert on failure (instead of returning false) and do not execute any hook on transfer.
- [`DssVest`](https://github.com/makerdao/dss-vest) is used to vest the rewards token on L1.
- [`VestedRewardDistribution`](https://github.com/makerdao/endgame-toolkit/blob/master/src/VestedRewardsDistribution.sol) is used to vest the rewards tokens from `DssVest`, transfer them to the `L1FarmProxy` and trigger the bridging of the tokens.
- The [Arbitrum Token Bridge](https://github.com/makerdao/arbitrum-token-bridge) is used to bridge the tokens from L1 to L2.
- The [escrow contract](https://etherscan.io/address/0xA10c7CE4b876998858b1a9E12b10092229539400#code) is used by the Arbitrum Token Bridge to hold the bridged tokens on L1.
- [`StakingRewards`](https://github.com/makerdao/endgame-toolkit/blob/master/src/synthetix/StakingRewards.sol) is used to distribute the bridged rewards to stakers on L2.
- The [`L1GovernanceRelay`](https://etherscan.io/address/0x9ba25c289e351779E0D481Ba37489317c34A899d#code) & [`L2GovernanceRelay`](https://arbiscan.io/address/0x10E6593CDda8c58a1d0f14C5164B376352a55f2F#code) allow governance to exert admin control over the deployed L2 contracts. These contracts have been previously deployed to control the Arbitrum Dai Bridge.
## Expected flow
- It is expected that the ether balance of the `L1FarmProxy` is continuously monitored and topped up as needed to ensure the successful operation of the proxy.
- Once the vested amount of rewards tokens exceeds `L1FarmProxy.rewardThreshold`, a keeper calls `VestedRewardDistribution.distribute()` to vest the rewards and have them bridged to L2.
- Once the bridged amount of rewards tokens exceeds `L2FarmProxy.rewardThreshold`, anyone (e.g. a keeper or an L2 staker) can call `L2FarmProxy.forwardReward()` to distribute the rewards to the L2 farm.
Note that `L1FarmProxy.rewardThreshold` must be sufficiently large to reduce the frequency of cross-chain transfers (thereby also reducing the amount of ether that needs to be provisionned into the `L1FarmProxy`). `L2FarmProxy.rewardThreshold` must also be sufficiently large to limit the reduction of the farm's rate of rewards distribution. Consider also choosing `L2FarmProxy.rewardThreshold <= L1FarmProxy.rewardThreshold` so that the bridged rewards can be promptly distributed to the farm. In the initialization library, these two variables are assigned the same value.
## Deployment
### Declare env variables
Add the required env variables listed in `.env.example` to your `.env` file, and run `source .env`.
Make sure to set the `L1` and `L2` env variables according to your desired deployment environment.
Mainnet deployment:
```
L1=mainnet
L2=arbitrum_one
```
Testnet deployment:
```
L1=sepolia
L2=arbitrum_one_sepolia
```
### Deploy the farm L1 & L2 proxies
The deployment assumes that the [arbitrum-token-bridge](https://github.com/makerdao/arbitrum-token-bridge) has already been deployed and was properly initialized.
Fill in the addresses of the L2 staking token and L1 and L2 rewards tokens in `script/input/{chainId}/config.json` under the `"stakingToken"` and `"rewardsToken"` keys. It is assumed that these tokens have been registered with the Arbitrum Token Bridge.
Fill in the address of the mainnet DssVest contract in `script/input/1/config.json` under the `vest` key. It is assumed that the vesting contract was properly initialized. On testnet, a mock DssVest contract will automatically be deployed.
Start by deploying the `EtherForwarder` and `L2FarmProxySpell` singletons. You must use a deployment key for which the current nonce on L2 has been "burned" on L1 (i.e. has already been spent on L1 in a transaction that is not a contract creation transaction). This is required to make sure the address of the `EtherForwarder` can never contain code on L1. If that address ever had code on L1, it would no longer be usable as an excess fee refund receiver (see the reason why [here](https://github.com/OffchainLabs/nitro-contracts/blob/61204dd455966cb678192427a07aa9795ff91c14/src/bridge/AbsInbox.sol#L248)).
```
forge script script/DeploySingletons.s.sol:DeploySingletons --slow --multi --broadcast --verify
```
Next, run the following command to deploy the L1 vested rewards distribution contract, the L2 farm and the L1 and L2 proxies:
```
forge script script/DeployProxy.s.sol:DeployProxy --slow --multi --broadcast --verify
```
### Initialize the farm L1 & L2 proxies
On mainnet, the farm proxies should be initialized via the spell process. To determine an adequate value for the `maxGas` storage variable of `L1FarmProxy`, the `Estimate` script can be run:
```
forge script script/Estimate.s.sol:Estimate
```
On testnet, the proxies initialization can be performed via the following command:
```
forge script script/Init.s.sol:Init --slow --multi --broadcast
```
### Run a test distribution
Run the following command to distribute the vested funds to the L1 proxy:
```
forge script script/Distribute.s.sol:Distribute --slow --multi --broadcast
```
Wait for the transaction to be relayed to L2, then run the following command to forward the bridged funds from the L2 proxy to the farm:
```
forge script script/Forward.s.sol:Forward --slow --multi --broadcast
```